INFLUENCE OF TURNAROUND STRATEGIES ON ORGANIZATIONAL PERFORMANCE OF HOTEL INDUSTRY IN COAST REGION, KENYA
Abstract
The purpose of the study was to investigate the influence of turnaround strategies on organizational performance with specific focus on hotels in the coast region. The study adopted descriptive research design. The study population of interest was 84 managers of star-rated hotels in Coast region. The study used Slovin’s formula to obtain a sample size of 69 respondents. The study utilized both primary and secondary data. Analysis was done by use of Statistical Package for Social Science (SPSS) version 25. From the study findings, it was established that the hotel had requested for an extension of debt payment terms which was less expensive alternative to bankruptcy. The study established that the hotels had undertaken internal operations reconfiguration which had improved efficiency and that the hotel had redesigned the existing structure so as to improve decision making. The study also established that new markets entry enabled hotels to obtain expertise and apply new and best business practices across markets. The study also established that hotel had embraced service innovation so as to retain and attract customers. The study established that hotel had a platform to engage customers so as to improve their satisfaction and that the hotel had segmented its customers so as to address varying needs of different customers. On financial restructuring, the study concluded that debt reduction as a financial restructuring strategy had not been adopted by the sampled hotels. On organizational restructuring, the study concluded that internal operations reconfiguration pursued by hotels had improved hotels’ efficiency. On repositioning strategy, the study concluded that new markets entry enabled hotels to obtain expertise and apply new and best business practices across markets. Finally, the study concluded that the hotel had embraced service innovation so as to retain and attract customers. The study recommended that the hotels should invest in service innovation so as to reduce costs and satisfy customers.The study recommended that the hotels should change current leadership so as to tap to new ideas and innovation and demolish status quo.
Key Words: Restructuring, Hotel Repositioning, Market Redefinition, organizational performance
CITATION: Mutavi, I. N., & Gichinga, L. (2019). Influence of turnaround strategies on organizational performance of hotel industry in coast region, Kenya. The Strategic Journal of Business & Change Management, 6 (3), 536 – 551.
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DOI: http://dx.doi.org/10.61426/sjbcm.v6i3.1335
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